If I am making an election for Section 754 in proseries, I am setting up new assets for the difference in the step-up basis and depreciating the new assets over their useful life starting with year one. When I setup the assets in the worksheet, I am selecting section 743(b) adjustment for it to be reported on box 13 code V as other deductions. If I look at the partners capital account in tax basis the system is not making any adjustment for the amount on box 13 to reduce the basis, is there an error in the system .
If I enter in the K1 worksheet the step-up basis for the section 754 in other adjustments the system does not do anything with the figure, I have to go to section M2 make the adjustment there and do the special allocation to the partner who is being affected by the step-up basis.
